This listing includes AI condition scoring, neighbourhood intelligence, and market valuation data — giving you a complete picture before you visit. Compare rental yield, price per square metre, and location strength against the broader Portuguese market to assess whether this property fits your investment strategy.
4-bedroom, 2-bathroom villa of 264 m², built in 1987, energy rating B. Located Ferreiras parish, Albufeira municipality, Faro district. This villa features high-quality granite-style countertops and stainless steel appliances in the renovated kitchen, enhancing its modern appeal in a tranquil setting.
The valuation. The asking price of €795,000 is below the fair value of €850,747, indicating a difference of €55,747 (6.6%). The property is fairly priced and represents a notable opportunity in the current market. Buy-to-flip angle. The buy-to-flip strategy could leverage the villa's attractive features to target potential buyers, given its appealing condition and prime location. This could result in a substantial profit margin post-renovation, particularly in a thriving tourist area. Buy-to-let angle. A buy-to-let approach could generate a gross yield of 3.7%, with estimated monthly rental income of €2,451. The property’s proximity to the Algarve's tourist infrastructure further supports its potential as a lucrative long-term rental investment.
Fair value modelled at €850,747 from 6 comparable sales in the area. Asking €795,000 sits €55,747 (6.6%) below — the upside to fair value.
Asking €795,000 versus the Ferreiras, Albufeira, Faro area baseline of €694,957 (€2,632/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 is above the parish average, lifting fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €694,957, adjusted for condition and micro-location, gives a modelled fair value of €850,747 (€3,223/m²), a €55,747 (6.6%) gap versus the €795,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferreiras · 51ceb0 | Subject | €795,000 | €3,011 | — | 76 | 72 |
| Ferreiras · 15e2c4 | Active | €550,000 | €3,056 | 1.5% | 75 | 62 |
| Ferreiras · efdd62 | Active | €1,200,000 | €2,414 | 19.8% | 72 | 72 |
| Albufeira e Olhos de Água · 82904b | Active | €685,000 | €4,660 | 54.7% | 76 | 70 |
| Ferreiras · 23f2a0 | Active | €630,000 | €3,231 | 7.3% | 82 | 70 |
| Median comp | €657,500 | €3,144 | 4.4% | 76 | 70 |
Short-term vacation rental The property offers an attractive gross yield of 3.7%, making it a viable option for short-term vacation rentals in the tourist-centric Algarve region. However, with a fair value slightly above the listing price, it indicates that the investment is currently priced fairly but does not present significant upside potential. Buy-and-hold As a buy-and-hold investment, the villa's fair valuation aligns closely with its listing price of €795,000, suggesting that there is limited room for appreciation in the near term. While the property benefits from the area's robust tourist infrastructure, the economic indicators and seasonal employment patterns may impede significant long-term value growth. Long-term rental With a fair value aligned closely to the current listing price, this property may not generate strong returns for long-term rental strategies despite being situated in a desirable tourist area. The moderate gross yield of 3.7% highlights concerns regarding long-term profitability, especially in a market influenced by seasonal economic factors. Not ideal for luxury market Given the current pricing and fair valuation metrics, this villa does not align with luxury market expectations and may struggle to attract that demographic. The general condition rating of 77/100 indicates a solid property but lacks the premium features typically sought in high-end investments. Not ideal for student housing This villa's characteristics and performance indicators do not make it suitable for student housing, particularly given the influence of seasonal employment patterns in the area. The mismatch between its offerings and the needs of long-term student tenants further reinforces this conclusion.
Economic Sensitivity The property's economic stability score of 65/100 indicates a moderate risk of economic fluctuations affecting revenue potential and tenant retention.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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